Income Tax (Trading and Other Income) Act 2005 section 352

Person liable

Section 352 identifies who is liable to pay tax on intellectual property receipts charged under this chapter.

• Tax liability falls on the person who actually receives the intellectual property receipts
• Alternatively, liability falls on the person who is entitled to receive those receipts, even if they have not yet been paid
• This replaces the previous charging mechanism under Schedule D Case VI of the Income and Corporation Taxes Act 1988
• Only one person bears the liability — whichever individual receives or is entitled to the income in question